Meta to report fourth-quarter earnings amid DeepSeek mania and ballooning AI investments
Meta to report fourth-quarter earnings amid DeepSeek mania and ballooning AI investments
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Zuckerberg likely to be asked about plans to spend $60-65bn on AI in 2025 as tech giant faces increased competition. Meta will report earnings for the fourth quarter of 2024 after US stock markets close on Wednesday. Analysts will probably ask about Mark Zuckerberg’s plans to spend between $60bn and $65bn on AI infrastructure in 2025. That is up from the $50bn the CEO said he expected to spend at the end of last quarter. But as Meta faces increased competition, especially from new player DeepSeek AI, the company is ramping up its AI efforts.
Earlier this week, Meta announced it was rolling out a more personalized AI assistant. The tech giant also maintains that Meta AI is the most used virtual assistant, though it is difficult to avoid using it on platforms such as Instagram and WhatsApp by design.
Some analysts remain bullish about Meta’s AI capabilities despite the overnight success of Chinese competitor DeepSeek. “DeepSeek is a great LLM model that is competitive with Meta’s Llama and OpenAI’s ChatGPT ... the comparisons end there, as tonight we expect a doubling down on the AI vision/build-out from both tech stalwarts Meta and MSFT which will be another strong sign of confidence this AI Revolution is just starting,” said Dan Ives of Wedbush Securities. Microsoft reported its quarterly earnings the same day as Meta.
